Toyota Must Face Claims Over Unintended Acceleration, Judge in U.S. Rules
The federal judge overseeing lawsuits against Toyota Motor Corp. involving allegations of unintended acceleration made final an order rejecting the automaker’s bid to throw out claims by vehicle owners claiming economic loss.
The Toyota owners contend the company drove down the value of their vehicles by failing to disclose or fix defects related to sudden acceleration. U.S. District Judge James V. Selna in Santa Ana, California, declined on May 13 to revisit last month’s tentative order allowing the lawsuits to move ahead because the vehicle owners had properly pleaded loss or injury, reported Bloomberg.
“Taking these allegations as true, as the court must at the pleading stage, they establish an economic loss,” Selna wrote, using language identical to his tentative ruling. “A vehicle with a defect is worth less than one without a defect.”
Toyota, the world’s largest automaker, recalled millions of U.S. vehicles, starting in 2009, after claims of defects and incidents involving sudden unintended acceleration. The recalls set off a wave of litigation, including hundreds of economic loss suits and claims by individuals or their families alleging injuries and deaths.
Most of the federal lawsuits were combined before Selna, who is overseeing pretrial evidence-gathering.
Selna issued a similar ruling in November that rejected Toyota’s motion to dismiss an earlier complaint by the vehicle owners.
Selna is conducting a hearing today on a request by lawyers for vehicle owners to use California law, which gives plaintiffs a better chance than most states of recovering damages, to pursue economic claims. Toyota has asked the judge to find that car owners can’t use California law on suits brought in other states.
Selna said last week that he was likely to rule in the vehicle owners’ favor. Selna said he didn’t believe Toyota’s rights to due process would be denied through using California consumer law on the claims.
The cases are combined as In re Toyota Motor Corp. Unintended Acceleration Marketing, Sales Practices and Products Liability Litigation, 8:10-ml-02151, U.S. District Court, Central District of California (Santa Ana).
More Industry

Ownership Priorities are Shifting
A new survey shows that in the U.S. vehicle quality for generation Z is largely defined by advanced safety features, intuitive technology and premium sound systems.
Read More →
Pump Price Jump Calculated
ISeeCars.com examined fuel costs for different power trains, finding which ones have experienced the biggest hits since the war in Iran commenced.
Read More →
Black Book: Weekly Market Update
Wholesale values fell last week despite the spring season still being in the traditional full-gear mode, analysts said.
Read More →
Arkansas Auto Group Acquires First Indiana Rooftop
Performance Brokerage Services represented both the buyer and seller in the sale of Carver Toyota of Columbus by Carlock Automotive Group.
Read More →
Stellantis to Dive Into U.S. Lending
The multinational maker of Chrysler, Dodge, Jeep, Ram and multiple other brands received conditional approvals for a Utah-based industrial bank.
Read More →
New-Vehicle Prices Rise
With April sales down, higher prices on in-demand large vehicles helped inflate the overall ATP, though increases were under long-term averages, Cox Automotive reported.
Read More →
Black Book: Weekly Market Update
Last week in the wholesale automotive market proved to be a mixed bag, analysts reported.
Read More →
Black Book: Weekly Market Update
Conversion rates were flat last week at 63%, Black Book analysts calculated, as low-mileage and almost-near units outpaced the overall market.
Read More →
EU Auto Association Urges Action
Trade relations between the European Union and the U.S. are at risk, causing the European Automobile Manufacturers Association to push lawmakers to make a decision.
Read More →
Driving into the Super CFC Era
Understanding the risks and benefits of retail accounting and Super CFCs can help you better present options to your dealer partners.
Read More →